Huntsville June home sales up 9 percent over same period last year
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Sales: According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 688 units during June, a growth in sales of 9.4 percent or 59 units from the same period last year. Year-to-date sales increased 13.5 percent from the first half of 2015. Two more resources to review: Quarterly Report and Annual Report.
For all of Huntsville’s area housing data, click here.
Forecast: Closed transactions in June were 123 units or 21 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through June projected 2,655 closed transactions, while the actual sales were 3,050 units, a favorable difference of 15 percent.
Supply: The Rocket City’s housing inventory totaled 2,773 units, a decrease of 13 percent from last June. New home inventory is up 134 units year-over-year, while existing single-family inventory is down 508 units.
The inventory-to-sales ratio in June was 4 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during June. Huntsville continues to move in a favorable direction when it comes to its inventory-to-sales ratio. The market in June experienced a 0.9 percent decrease in inventory when compared to May. Historical data indicate a typical 4.2 percent increase from May to June.
Demand: Residential sales in June increased by 30 percent from May. This direction is consistent with seasonal patterns and historical data indicating that June sales, on average (2011-2015), increase from May by 12 percent. New home sales made up 23 percent of sales, unchanged from the previous June. Existing single-family home sales accounted for 74 percent of total sales, down from 77 percent in June 2015, while condos were 2 percent of sales, unchanged from June 2015.
Pricing: The Huntsville median sales price in June was $180,050, an increase of 0.3 percent from June 2015 and up 0.1 percent from the prior month. This month-over-month direction is consistent with historical data (2011-2015) indicating that the June median sales price on average increases from May by 4.4 percent. Pricing can fluctuate as the sample size of data is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional to discuss pricing at the neighborhood level.
Industry perspective: “Housing activity is gaining strength heading into the summer, with pending home sales rising to a decade high. In addition, new home sales surged to an expansion best, a positive for single-family homebuilding, especially since only a small share of new homes for sale are completed and ready to occupy,” said Fannie Mae Chief Economist Doug Duncan in the organization’s June Economic Outlook. “However, recent pullbacks in construction hiring, likely due to a shortage of skilled workers, could weigh on the outlook for the sector. With little improvement in the current housing supply picture so far, we expect only moderate housing expansion this year.” For the full report, click here.
The Huntsville/Madison County Residential Monthly Report is developed in conjunction with the Huntsville Area Association of Realtors to better serve North Alabama consumers.